Business Reporter
Masimba Holdings this week successfully listed its plastics manufacturing subsidiary, Proplastics, separately on the Zimbabwe Stock Exchange, a move aimed at making the two companies attractive to capital.
The construction and manufacturing company listed the counter through a dividend-in-specie. It listed at 3c per share.
The listing follows the approval of the unbundling by Masimba shareholders two weeks ago, as the group believes that focusing on core business could help the two companies attract capital and unlock shareholder value in the process.
Proplastics will also have room to grow its business independently from Masimba. In the period to April Proplastics recorded a 7 percent growth in volumes. The company has a “very positive outlook” according to the group’s chief executive, Mr Canada Malunga.
He said residential housing and agriculture infrastructure will drive Proplastics business going forward.
Proplastics is going through plant modernisation programmes, product innovation and improved internal controls which are expected to further improve product competitiveness.
A new set of injection moulding machines that are key to the supply of plastic foundry products will be commissioned this month.
The machines have been paid for in the period under review and therefore there will be no other cash flow impact as a result of the plant commission- ing.
Proplastics is eyeing mergers and acquisitions as a strategy for further growth.
“Significant mergers and acquisition opportunities exist for Proplastics and we believe that taking advantage of those opportunities on top of what the business is going through at the moment will convert Proplastics into a truly world-class regional business. The unbundling is the first step towards the fulfilment of that long-term vision,” said Mr Ma- lunga.